QatarEnergy agrees to supply LNG to Germany for at least 15 years
QatarEnergy has signed two long-term LNG sale and purchase agreements with ConocoPhillips affiliates to deliver up to 2 million tons per annum (mtpa) of LNG from Qatar to Germany.
Under the two agreements, a ConocoPhillips wholly-owned subsidiary will purchase the agreed quantities to be delivered ex-ship to the German LNG receiving terminal, which is currently under development in Brunsbüttel in northern Germany, with deliveries expected to start in 2026.
The LNG volumes will be sourced from the two joint ventures between QatarEnergy and ConocoPhillips that hold interests in Qatar’s North Field East (NFE) and North Field South (NFS) projects.
Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of QatarEnergy, explained that the agreements “are momentous for several reasons”.
They are said to mark the first-ever long-term LNG supply to Germany with a supply period that extends for at least 15 years, thus contributing to Germany’s long-term energy security.
“They also represent the culmination of efforts between two trusted partners, QatarEnergy and ConocoPhillips, over many years, to provide reliable and credible LNG supply solutions to customers across the globe, and today, to German end-consumers. This is a concrete demonstration of QatarEnergy’s resolve to provide reliable energy supplies to all major markets around the world, and of our commitment to the German people”, Al-Kaabi said.
On his part, Ryan Lance, the Chairman and CEO of ConocoPhillips, said: “QatarEnergy and ConocoPhillips are excited for the opportunity to responsibly and securely supply world markets with LNG from the Qatari expansion projects.
“These agreements will provide an attractive LNG offtake solution for our new joint ventures with QatarEnergy and position the joint ventures as reliable sources of LNG supply into Europe.”
ConocoPhillips’ partnership in the North Field LNG expansion projects is made up of a 3.125% share in the NFE project and a 6.25% share in the NFS project, which are planned to commence production in 2026 and 2027, respectively.
The new agreements come on the heels of the recently signed LNG supply deal between QatarEnergy China Petroleum & Chemical Corporation (Sinopec).
It is described as the longest gas supply agreement in the history of the LNG industry and covers the delivery of 4 mtpa of LNG to China for a period of 27 years.
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